Correlation Between Artisan Partners and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both Artisan Partners and Citizens Bancorp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Artisan Partners and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Partners Asset and Citizens Bancorp Investment, you can compare the effects of market volatilities on Artisan Partners and Citizens Bancorp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Artisan Partners with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and Citizens Bancorp.
Diversification Opportunities for Artisan Partners and Citizens Bancorp
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artisan and Citizens is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and Citizens Bancorp Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Bancorp Inv and Artisan Partners is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Artisan Partners Asset are associated (or correlated) with Citizens Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Bancorp Inv has no effect on the direction of Artisan Partners i.e., Artisan Partners and Citizens Bancorp go up and down completely randomly.
Pair Corralation between Artisan Partners and Citizens Bancorp
Given the investment horizon of 90 days Artisan Partners Asset is expected to generate 0.97 times more return on investment than Citizens Bancorp. However, Artisan Partners Asset is 1.03 times less risky than Citizens Bancorp. It trades about 0.19 of its potential returns per unit of risk. Citizens Bancorp Investment is currently generating about 0.1 per unit of risk. If you would invest 4,372 in Artisan Partners Asset on August 28, 2024 and sell it today you would earn a total of 422.00 from holding Artisan Partners Asset or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Partners Asset vs. Citizens Bancorp Investment
Performance |
| Timeline |
| Artisan Partners Asset |
| Citizens Bancorp Inv |
Artisan Partners and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Partners and Citizens Bancorp
The main advantage of trading using opposite Artisan Partners and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, Citizens Bancorp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Citizens Bancorp will offset losses from the drop in Citizens Bancorp's long position.| Artisan Partners vs. Federated Premier Municipal | Artisan Partners vs. Blackrock Muniyield | Artisan Partners vs. Diamond Hill Investment | Artisan Partners vs. NXG NextGen Infrastructure |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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